A firm that pays a 21% corporate income tax has 3,000,000 shares of common stock outstanding trading at $40 per share and 50,000 bonds outstanding trading at $960 per bond. The firm's stock distributes a dividend at the end of every year that grows at a 4% annual rate. The next dividend it will distribute, at the end of this year, will be $4. The firm's bonds have 20 years left to maturity, a $1000 par value and a 9% coupon rate, with coupons paid semiannually. Estimate the firm's cost of capital